The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Freeport-McMoran Copper & Gold (NYSE:FCX) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.

But making Freeport-McMoran Copper & Gold an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of FCX entered into oversold territory, changing hands as low as $33.50 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In the case of Freeport-McMoran Copper & Gold, the RSI reading has hit 27.5 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 43.4. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, FCX's recent annualized dividend of 1.25/share (currently paid in quarterly installments) works out to an annual yield of 3.65% based upon the recent $34.30 share price.

A bullish investor could look at FCX's 27.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on FCX is its dividend history.
In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.

FCX Dividend History

Date

Div*

04/11/12

0.313

01/11/12

0.250

10/12/11

0.250

07/13/11

0.250

04/13/11

0.250

01/12/11

0.250

10/13/10

0.150

07/13/10

0.150

04/13/10

0.075

01/13/10

0.075

10/10/08

0.250

07/11/08

0.219

04/11/08

0.219

01/11/08

0.219

10/11/07

0.157

07/12/07

0.157

04/12/07

0.157

01/11/07

0.157

10/12/06

0.157

09/12/06

0.375

07/13/06

0.160

06/13/06

0.375

04/12/06

0.157

03/13/06

0.250

01/12/06

0.157

12/13/05

0.250

10/12/05

0.125

09/13/05

0.250

07/13/05

0.125

04/13/05

0.125

03/11/05

0.250

01/12/05

0.125

12/16/04

0.125

10/13/04

0.125

07/13/04

0.100

04/13/04

0.100

01/13/04

0.100

10/10/03

0.045

07/11/03

0.045

04/11/03

0.045

10/14/98

0.025

07/14/98

0.025

04/14/98

0.025

01/14/98

0.025

10/10/97

0.113

07/11/97

0.113

04/11/97

0.113

01/13/97

0.113

10/10/96

0.113

07/11/96

0.113

04/11/96

0.113

10/12/95

0.113

* Data may be adjusted for splits; we are not responsible for data errors; always verify data with the company.

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